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Thursday, February 7, 2013

Boston Properties Locks Down Development Site for 27-Story San Francisco Office Tower

National Commercial Real Estate News From CoStar Group

Boston Properties Locks Down Development Site for 27-Story San Francisco Office Tower

After hinting on its recent quarterly conference call that it was close to wrapping up a new development site in downtown San Francisco, Boston Properties, Inc. (NYSE:BXP) made good on its promise. Late Wednesday, the REIT announced it had acquired a prime office developement site in the city's South Financial submarket at 535 Mission Street for $71 million in cash, buying the land from fellow Boston-based firm Beacon Capital Partners.

Sensing that commercial real estate markets are near a point that properties are not going to get any less expensive, there is a strong temptation to jump in and grab deals while the getting is good and real estate is still affordable.

However, CRE brokers and advisors who have been refined by five years of recession are cautioning their clients against over-exuberance. Instead, they are encouraging clients to measure their risk tolerance and move...